UAE: Gold prices rise amid growing Middle East tensions

Spot gold was trading at $2,384.14 per ounce at 9.25 am UAE time, up 0.17 per cent

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Published: Fri 19 Apr 2024, 10:06 AM

Gold prices inched higher in the UAE on Friday morning as geopolitical tension in the Middle East rose after explosions in Israel.

The Dubai Jewellery Group data showed 24K trading at Dh288.5 per gram at the opening of the markets on Friday, as compared to Dh288.25 per gram at the close of the markets on Thursday. While 22K, 21K and 18K were trading at Dh267.25, Dh258.75 and Dh221.75 per gram, respectively.

Spot gold was trading at $2,384.14 per ounce at 9.25 am UAE time, up 0.17 per cent.

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On Friday, gold prices rose amidst fears of a wider regional conflict after explosions in Israel. Iran shot down three drones over the city of Isfahan as Israeli drones reportedly an Iranian site.

Vijay Valecha, Chief Investment Officer, Century Financial, said gold prices were driven higher by escalating conflicts in the Middle East, which increased the metal’s appeal as a safe-haven asset.

“This trend outweighed the impact of sustained high US interest rates... Additionally, the gold market is closely monitoring upcoming key US economic indicators, including Unemployment Claims, the Philly Fed Manufacturing Index, Existing Home Sales, and remarks from FOMC members, which could offer further insights into the Federal Reserve's interest rate trajectory,” he said.

From a technical standpoint, he said, gold is currently trading above its pivot point, indicating a bullish trend.

“Gold prices are forming an upward channel and consistently displaying bullish candles above this moving average. On the downside, immediate support is seen at $2,362, followed by $2,355,” he said.


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